VAT Italy Insurance Bond: the New Solution to Avoid the €50,000 Deposit Required from Non-EU Companies Operating in Italy

In recent years, the Italian tax system has introduced a significant barrier for non-EU companies operating in Italy through a fiscal representative: a mandatory €50,000 security deposit to obtain or renew their VIES registration. 

For many international businesses, this requirement creates a major financial burden, tying up liquidity that could otherwise be used for operations, investment, or growth.

To overcome this issue, a new solution is now available: a VAT Italy Insurance Bond specifically designed for VIES compliance. This guarantee is issued by a leading Italian insurance company and made accessible through a dedicated agreement, requiring no cash collateral and no Italian guarantor.

This innovative insurance bond fully replaces the €50,000 deposit or the need for a local guarantor, allowing non-EU companies to continue operating in Italy without immobilising capital. For businesses that rely on a fiscal representative, this solution represents a more modern, fair, and financially sustainable alternative to the traditional fixed deposit.

Why the €50,000 VIES Deposit Is a Problem for Non-EU Companies

The deposit is designed to ensure that a company complies with Italian tax obligations.
However, freezing €50,000 creates significant liquidity issues. Many foreign operators are forced to slow down their operations, delay investments, or even withdraw from the Italian market—despite being fully compliant and punctual in their tax payments.

In several cases, the deposit requirement has pushed businesses to suspend their VIES registration, reducing commercial activity and increasing administrative pressure.

This makes the need for a more balanced system clear—and the new VAT Italy Insurance Bond provides exactly that.

The New VAT Italy VIES Insurance Bond

The most important innovation is that this insurance bond does not have a fixed cost for all companies.
Instead, it is based on a turnover-based tiered structure.

The insured amount always remains €50,000, as required by the Italian Revenue Agency, but the insurance premium varies according to the company’s size and annual revenue.

Smaller companies pay a lower premium.
Larger companies pay a premium proportionate to their structure and operations.

The result is simple: no blocked capital and a premium that is fair, flexible, and aligned with the company’s actual economic profile.

This structure finally makes fiscal representation in Italy sustainable for many non-EU businesses.

Who Can Benefit from the VAT Italy Insurance Bond

This solution is designed for all non-EU companies that operate in the Italian market through a fiscal representative and need to comply with VIES requirements without immobilising funds.

It is particularly suitable for:

• Non-EU companies renewing their VIES registration
• Businesses that have consistently worked with the same fiscal representative and always paid their taxes on time
• Operators seeking a modern, flexible alternative to the traditional cash deposit
• Companies with a stable tax history and proven reliability

For these organisations, the bond offers a secure, transparent, and financially smarter way to operate in Italy.

Eligibility Requirements and How the Agreement Works

The agreement follows strict but transparent rules to ensure reliability and simplify checks.

Companies can join if they meet one of the following conditions:

• They have been working with their current fiscal representative for at least 24 months, or
• They are switching from another fiscal representative and can prove that all F24 tax payments have been made regularly

The insurance company may request additional documents such as F24 payment receipts, tax compliance certificates, references from the previous representative, and a short summary of the company’s tax history in Italy.

Structure of the Agreement

The mechanism is straightforward:

• The fiscal representative is the policyholder (contracting party)
• The bond covers the tax obligations related to fiscal representation
• Each non-EU company joins through a dedicated membership form
• The company must meet all deadlines related to F24 payments

Timely tax payments are essential, as the entire insurance structure depends on the certainty that obligations will be fulfilled.

How F24 Tax Payments Are Managed

The fiscal representative prepares all F24 forms and provides advance notice of amounts and deadlines.
The non-EU company must either pay directly or authorise its representative to process the payment within the specified timeframe.

This process avoids delays, ensures tax compliance, and maintains a secure structure for the insurance system.

Required Documents

To activate the VAT Italy Insurance Bond, non-EU companies must submit:

• Completed membership form
• Evidence of F24 payments from 2020 to the present (when available)
• Any certificates confirming tax compliance
• A brief summary of their tax history in Italy, especially when changing representative

These documents allow the insurer to assess eligibility and verify fiscal reliability.

Key Benefits for Non-EU Companies

Joining this system offers several strategic advantages:

• No need to block the €50,000 deposit
• More liquidity for logistics, stock, investments, and operations
• A compliant and fully recognised alternative to cash collateral
• A stronger image of fiscal reliability towards Italian authorities
• Increased credibility with banks, partners, suppliers, and stakeholders
• A transparent and safer framework for international commerce

For companies seeking a sustainable and professional solution to operate in Italy, the VAT Italy Insurance Bond represents a major breakthrough.

Need More Information?

For guidance, assistance, or to start the evaluation process, you can contact us directly.